Danfoss

Impressive financial results based on developing employee competencies, attitudes and behaviour

Danfoss is one of Denmark's most prominent industrial companies with an annual turnover of more than DKK 16 billion. The Group is a global market leader within development, production, sales and service of mechanical and electronic components in a range of industries. Its activities are divided into three main areas: Refrigeration & Air Conditioning, Heating & Water and Motion Controls. Danfoss also owns a large share of Sauer-Danfoss, one of the world's leading companies in the mobile hydraulics industry. Danfoss has production and sales companies in 111 countries worldwide, and employs more than 18,000 employees.

Task
Design, test and roll out a global concept for developing customer loyalty and increasing sales efficiency.
Integrate and anchor the concept through the "4C" programme (Customer Loyalty, CRM, Competence Development & Cultural Change) and Danfoss Business System.

Challenges

• To develop a concept for developing and capitalising on customer loyalty
• To document that the concept is an effective tool for increasing sales efficiency
• To establish, train and support a global "change office" at Danfoss
• To ensure an efficient global roll-out of the change office concept
• To integrate the concept in "4C" and the Danfoss Business System.

Concrete results
Successful pilot project with impressive financial results based on developing employee competencies, attitudes and behaviour.

Financial results achieved by the pilot project:

• Double the annual growth rate (from 3% to 6%)
• Break-even point after seven months
• Yield target reached ~157% after eight months.

Additional project results:

• Development of brand new loyalty development tools
• Concept roll-out in 13 of the 25 countries included in the programme
• Loyalty principles integrated in subsidiaries' management and HRD systems
• Loyalty benchmarks established and integrated in business and sales strategies
• Competencies and tools for solving the assignment
• Forespring™Loyalty Simulator 
• Customer, organisation, culture, strategy and employee surveys
• Management, employee, organisation and culture development processes
• Profit Simulator for simulating the financial impact of various improvement initiatives
• IT online and telephone data collection system as well as specific language versions for standard reporting
• Concept for measuring and developing a corporate culture in the individual subsidiaries
• Report standards for customers, segments, districts and sales staff for use with the global SAP and CRM systems.

Train-the-trainer concept for customer surveys, change management and establishing a culture of improvement at local level (the process is described in the figure below).